Advanced Functional Materials Market: By Type (Ceramics, Energy Materials, Conductive Polymers, Nanomaterials, Composites, Others), By End-User Industry (Electrical & Electronics, Automotive, Healthcare, Aerospace & Defense, Energy & Power, Others), and Geography

Advanced functional materials market was valued at USD 107.3 billion in 2022 and is poised to grow at a CAGR of 7.1% over 2023-2029. Advanced Functional Materials (AFM) are a class of materials that have been created and manufactured to perform better than conventional materials. These materials have unique qualities or functions that make them attractive for particular applications. Chemistry, physics, materials science, and engineering are just a few of the disciplines that are frequently combined in the development of improved functional materials. The increasing demand for electronics with the shifting preference for smaller, lighter, and more powerful electronic devices drives the need for advanced functional materials. Furthermore, the market is also anticipated to propel owing to the global rise in demand for minimal sustainable energy solutions from end-user applications in engineering and cars, paired with strict regulatory environmental laws.

Additionally, there is a sizable potential opportunity for manufacturers and researchers for new healthcare product development due to the rising demand for sophisticated functional materials in healthcare applications such as biosensing, medication delivery, and tissue engineering. Currently, using nanocomposites, that combine nanoscale materials with conventional matrices, is becoming a trend in the market since it offers better qualities for a variety of applications. But the high cost of research & development, and production of advanced functional materials along with the lack of uniform testing procedures and characterization processes may hinder the growth of the market. However, the ongoing technological advancements, increased demand for electronics, increasing initiatives and regulations by the government, rising environmental concerns, and increased investments for research and development activities by the key players are anticipated to burgeon the market growth over the forecast years.

Advanced Functional Materials Market Key Developments:

• In June 2022, Hitachi High-Tech Corporation launched the AFM100 Pro High-Sensitivity Scanning Probe Microscope System, a high-end scanning probe microscope with a newly developed high-sensitivity optical head that improves sensitivity. The AFM100 Pro meets the requirement for on-site analysis of advanced functional materials and will contribute to solving customer issues.
• In March 2022, Mitsubishi Corporation and Toyobo Co., Ltd. announced their agreement to form a new joint venture company to focus on the planning, research, manufacture, and marketing of functional materials.